Shareholders of Access Bank Plc, on Tuesday in Lagos gave their blessing o its planned merger with Diamond Bank, in what is poised to became an enlarged financial powerhouse that will guaranty juicier returns on their investment.
Addressing the shareholders at the court-ordered meeting to ratify the business combination, Managing Director and Chief Executive of the bank, Herbert Wigwe said although Diamond bank is coming into the union with bad debts, Access Bank has capacity to absorb and extract value therefrom.
Diamond Bank shareholders also approved the takeover on Tuesday.
According to a statement by Access Bank, the launch of the emergent Access Bank could be unveiled on April 1, “following receipt of … regulatory approvals.”
Ahead of the eventual fusion of both entities, Wigwe said Access Bank is putting in place a strong team to ensure recovery of depositors money from debtors.
The merger, he believes, will enable Access Bank accelerate its prospects of becoming the leading retail bank in Nigeria and Africa.
“Through the merger with Diamond Bank, Access bank will achieve the exponential expansion of its retail banking franchise,” he assured further
“Access Bank will benefit from Diamond Bank’s unparalleled retail banking activities and strong digital offerings. Together the two banks will create one of Nigeria’s leading banks with 27 million customers, 3100 ATMs, 32000 PoS and more than 10 million mobile customers.
“Access Bank and Diamond Bank share similar areas of focus including women, youths, financially excluded and entrepreneurs. The combined relationship will have a robust mobile banking relationship ensuring that customers of the enlarged Access bank would continue to access a strong mobile banking
“Access bank and Diamond Bank will also operate from the same technology platform which the boards of both banks will enable them complete the integration with minimal disruption in addition to generating synergies.”
Listing the benefits of the merger he said the board of both banks believe the merger will provide significant opportunities and benefit to customers staff, shareholders regulators and other shareholders one of which is the establishment of the largest retail bank in Africa by the number of customers
Wigwe said the enlarged Access Bank skills pool and product range will further accelerate the financial inclusion drive that both banks have been doing separately, adding that an increased its market reach will ensure customer convenience through an expanded branch network complemented by strengthened distribution channels
“The enlarged Access Bank will have a strengthened commercial banking business through the combination of customers and by leveraging the combined product offerings.
“The combination of Diamond Bank’s strong retail customer franchise and Access Bank proven risk management and capital management expertise will create a Nigerian financial institution with strong value creation.
“The enlarged Access Bank balance sheet in terns of size will be equipped with the capacity to provide credit lines to our more diversified client base. Finally the enlarged access bank will be a stronger and safer institutions with an enlarged capital base,” he added.